To lower the upfront cost of buying a new home for young Canadians and spur the construction of new homes across the country, the government is eliminating the Goods and Services Tax (GST) for first-time home buyers on new homes up to $1 million and reducing the GST for first-time home buyers on new homes between $1 million and $1.5 million.
On May 27, 2025, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, tabled legislative proposals to amend the Excise Tax Act to introduce a new GST rebate for first-time home buyers (the “FTHB GST Rebate”). As a result of this rebate, first-time home buyers will be able to save up to $50,000 on a new home. This measure is expected to deliver $3.9 billion in tax savings to Canadians over five years, starting in 2025-26.
January has been nothing short of stunning in the Central Okanagan, with crisp, sunny days highlighting the region’s natural beauty. Whether it’s the snow-dusted vineyards, breathtaking lake views, or the vibrant energy of winter activities, there’s been plenty to enjoy as we ease into the new year. And while the season often brings a slower pace, the real estate market is showing fresh signs of momentum, giving buyers and sellers plenty of reasons to feel optimistic about what’s ahead.
The Central Okanagan real estate market is starting 2025 on a promising note, thanks to the recent interest rate cut by the Bank of Canada. After a challenging 2024, this adjustment is expected to bring more buyers back into the market by making borrowing more affordable. Many prospective homeowners who had been holding off due to high mortgage rates are now reconsidering their options, leading to an uptick in sales activity. Sellers, in turn, are seeing more interest in their properties, helping to create a more balanced and optimistic market environment. While market activity is improving, prices are holding relatively steady. Some property types have seen modest increases, while others have experienced slight declines, but overall, the market is stabilizing. Townhomes and single-family homes remain particularly popular, with steady demand keeping prices from dropping significantly. Condos, on the other hand, have seen slower growth as buyers focus more on affordability and space. However, as the year progresses, this segment could also see a boost as more first-time buyers take advantage of lower interest rates.
Another factor contributing to this market shift is the growing inventory of available homes. More listings mean buyers have greater choice, reducing some of the urgency that defined the market in previous years. This has created a healthier balance, allowing buyers to make more considered decisions rather than rushing into purchases. At the same time, sellers who price their homes competitively are seeing quicker sales, particularly in high-demand areas.
For those considering making a move in 2025, this could be an ideal time to explore the market. With interest rates lower and inventory improving, buyers have more negotiating power, while sellers benefit from renewed demand. Whether you’re thinking about buying, selling, or just curious about what these market changes mean for you, now is a great time to connect with your local RE/MAX agent. As full-time professionals who understand the ins and outs of the Central Okanagan market, we’re ready to provide expert guidance and help you make the most informed decisions—no matter where you are in your real estate journey.
According to the RE/MAX 2024 Fall Housing Market Outlook Report, the long-anticipated decline in interest rates is expected to have a ripple effect on the market this fall, with consumer confidence rising and average sale price increasing in most regions by year’s end.
RE/MAX brokers and agents share insights on their local markets and estimated outlooks for fall 2024. Read the full report on remax.ca to stay informed.
